Consumer Price China recorded the fastest pace in a year

China's consumer prices grew at the fastest pace in a year as the supply of pork crisis boosted the cost of staples.

The consumer price index increased by 2% in August from a year earlier, compared with a 1.6% rise in July. Who broke the 1.8% estimate of economists in a Reuters poll. While the producer price index extending losses for the reported month 42 in a row, with a slump of 5.9% in the last month.

Diverging tendency of the consumer price and the producer complicate policy prospects People's Bank of China. China's consumer price inflation is now higher than the benchmark rate for one-year deposits, which means that real interest rates for savers at the level close to zero. Meanwhile, the factory deflation has pushed real borrowing costs for the industrial sector, which presents challenges in a slowing economy.